The United Kingdom Fintech Market size is estimated at USD 14.74 billion in 2024, and is expected to reach USD 24.06 billion by 2029, growing at a CAGR of 10% during the forecast period (2024-2029).
The UK fintech industry is growing quickly, and the COVID-19 pandemic accelerated this growth. There are opportunities for innovative UK fintech solutions to be provided as a disruptive technology, as well as to forge partnerships with the major incumbent financial institutions. Though concentrated in London, there are other major centers for FinTech throughout the various regions of the UK, including FinTech North, FinTech West, FinTech Northern Ireland, FinTech Scotland, and Fintech Wales.
The United Kingdom is one of the leading global fintech hubs and has been at the forefront of financial innovation for several years. The UK fintech industry is a significant contributor to the country's economy, generating billions of pounds in revenue and providing thousands of jobs. The UK fintech industry has attracted significant investment, with funding reaching record levels in recent years. This investment has been driven by a range of factors, including the growth potential of the market, the availability of skilled talent, and the supportive regulatory environment. FinTech is already vital to the UK, and the value of the global market is expected to triple in the next decade. In a similar way to how the COVID-19 pandemic introduced wide-ranging changes to the way people work and live, the impact of Brexit continues to be felt for a long period. While no single EU rival to the City of London has emerged yet, different Member States are taking advantage of the uncertainty presented by Brexit and are positioning themselves as new homes for fintech.
London is one of the world's top three FinTech centers, with around two-thirds of all UK FinTechs located there. London's success as a superhub is contagious. It has helped to build and nurture a halo of FinTech activity in regions such as Milton Keynes, Oxford, Brighton, Southampton, and Bournemouth in Greater London, the South, and the South East of England. A few of these places, such as Reading and Cambridge, are forming new clusters. In terms of specialization, it is strong across the board, particularly in Banking, Payments, and WealthTech.
London is ranked second as a top financial center after New York. It also serves various financial products along with the Artificial Intelligence provision, with the financial product serving the global market abundance of Fintech Products for managing loan origination, risk, and collections during these times. B2B FinTechs (e.g., RegTech, core banking software, data analytics providers), payments, Transfers P2P and other stock exchanges as well as Cryptocurrency. Also, it has boosted the Australian fintech market with various contracts and services.
The UK financial technology (FinTech) industry is highly fragmented and is expanding rapidly. In recent years, areas such as peer-to-peer lending, money transfer, and digital banks have performed well. The UK is currently home to more than 800 FinTech startups that cater to numerous clients and cover a broad range of services such as digital payments, alternative finance, wealth management, and blockchain, among others. Some of the major players in the market are MoneyBox, Monzo, Transfer Wise, Payment Sense, and Starling Bank.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook